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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (48428)	12/30/2005 12:39:41 PM
From: Kailash	Respond to of 110194

What proportion of agency bonds are owned by FCBs? How much of the new issues are they buying? What proportion of China's US paper is agency bonds? How much of it is ten year? Futher out? Buying long-term agency bonds would seem to me to serve as an indicator that the buyer expects to be in US paper for the (relatively speaking) long haul. Some Chinese bank officials have been vocal recently about the need to swap dollars for physical assets (mines, oil fields). While they have plenty of room to do both, the proportions matter. BTW since the Chinese central bankers speak openly about lightening up on the dollar, this may mean that the idea that a decline in the dollar could be dramatic enough to pose a severe risk to their economy (as Roubini argues should be contemplated) may be fairly new to them, and not fully expressed in policy.